Hindenburg Research Slams the Latest Takeover Bid for Aphria

Hindenburg research slams Aphria

On December 28, short seller Hindenburg Research released an update on Aphria’s (APHA) recent takeover bid from Green Growth Brands, calling it a “circus.” Hindenburg also called this takeover bid “merely an epic next step of Aphria’s brazen shell game” and views this latest development as “non-credible and likely an attempt to generate the appearance of demand in the hopes of spurring credible offers.”

Here are the highlights of that report.

  • Green Growth Brand’s second-largest shareholder is connected to Aphria’s CEO, Vic Neufeld.
  • Green Growth appeared to be a company with little revenue and tangible assets, which Hindenburg calls “worthless.”
  • Green Growth’s board of directors includes members of Aphria’s board, which Hindenburg describes as having affiliations between the two companies.

As of 11:56 AM ET today, Aphria was trading nearly 11% higher on the NYSE while peers (MJ) Cronos Group (CRON), Aurora Cannabis (ACB), and Canopy Growth (WEED) were still trading in negative territory.